Unilever has put its Colman’s mustard brand up for sale as it seeks to address potential competition concerns ahead of its planned $44.8bn combination of its foods business with US condiments group McCormick.

Investment bank Rothschild is understood to be approaching potential buyers, according to reports, which first appeared in Sky News.

The Colman’s brand, founded in 1814, is being sold because McCormick already owns French’s, a major global mustard brand. The transaction will combine Unilever’s foods business, including Hellmann’s, Knorr, Marmite and Pot Noodle, with McCormick.

Unilever agreed in March to separate its Foods business and combine it with McCormick in a transaction valuing the business at $44.8bn. Unilever and its shareholders will receive shares representing 65% of the combined company alongside $15.7bn in cash, while Unilever will retain a 9.9% stake to sell over time.

The Competition and Markets Authority (CMA) consulted on the proposed deal in July and closed on August 5, with completion expected by mid-2027 at the latest. Also in July, McCormick revealed plans for a secondary share listing in London.

The market reaction was relatively muted, because for a company with a market value of roughly £100bn, Colman's is a very small asset. Unilever shares fell around 1.3%-1.6% to about £47.00 in London, while McCormick was down 1.9% at $54.06 in pre-market trading in New York.

---